MSCI Retains Indonesia's Emerging Market Status, But Flags Concerns

Morgan Stanley Capital International (MSCI) has decided to maintain Indonesia’s position at the emerging market level. The announcement was made by the global index provider in its Global Market Accessibility Review 2026 report, released on Thursday evening.

According to the report document released on Friday, 19 June 2026, although the Indonesian capital market’s rating was not downgraded, MSCI provided a series of notes regarding future improvements. The primary concern is the equality of rights for foreign investors regarding the availability of information from listed companies.

“Equality of rights for foreign investors: Company-related information is not always available in English,” MSCI stated in its report.

Other issues include the level of foreign exchange market liberalisation, where, for example, foreign exchange transactions must be linked to securities transactions. Additionally, stock borrowing is permitted but restricted to certain securities and limited to 90-day lending contracts.

In relation to the information flow, MSCI decided to cut Indonesia’s rating. “Information Flow: ‘+’ becomes ‘-’. Concerns about investability remain due to limited transparency in share ownership structures and coordinated trading behaviour that undermines proper price formation. Detailed stock market information is not always disclosed in English,” the report clarified.